Baltimore, MD – (August 20, 2018) –Maryland Higher Education Commission (MHEC) Secretary Dr. James D. Fielder announced that applications for the 2018 Student Loan Debt Relief Tax Credit are now being accepted.
This year, both undergraduate and graduate student debt is eligible for the tax credit, and the application can be downloaded by going to www.mhec.maryland.gov and clicking on File for the 2018 Tax Credit under Quick Links. This is not a check, but rather a tax credit on the former or current student’s 2018 Maryland taxes.
College debt is now estimated to be $1.48 trillion nationwide and the average debt in Maryland is $27,455 per student. Governor Larry Hogan has consistently made college affordability one of his administration’s top priorities and has worked with the Maryland Higher Education Commission to produce solutions for our students and graduates. The reforms championed by the governor will provide much-needed relief to the hundreds of thousands of Marylanders who are currently burdened by student debt.
“This tax credit is an innovative example of how Marylanders can achieve student success with less debt,” Secretary Fielder said. “As students increasingly pay off their student debt, they will see increasing opportunities to invest in their future outside of the classroom. This could mean homeownership or other investments.”
The tax credit will be available to Maryland taxpayers who:
- File Maryland State Income Taxes for the 2018 tax year;
- Have incurred at least $20,000 undergraduate and/or graduate student loan debt;
- Have at least $5,000 in outstanding student loan debt remaining when applying for the tax credit;
- Have completed and submitted an application to the Maryland Higher Education Commission by September 15, 2018;
- Have submitted all required graduate and/or undergraduate student loan information, including Maryland income tax information and college transcripts; and
- Must agree to pay the complete tax credit received into their outstanding loan balance within two years and provide a record of the payment.
Further, Governor Hogan recently announced that he will introduce emergency legislation on the first day of the 2019 legislative session, allowing Marylanders to deduct 100 percent of the interest paid on their student loans from their income tax return. Since taking office, the Hogan administration has been working to make college more affordable by investing more than $7.1 billion in higher education and providing easier access to financial aid and student debt relief resources.